Bipartisan Health Care Bill Unveiled in the House

A bipartisan group of lawmakers in the House of Representatives unveiled a health care bill that aims to provide billions of dollars in subsidies to low-income people to help them purchase private health insurance. The bill, which does not raise taxes or require employers to contribute to the cost of coverage for their employees, has been endorsed by the American Medical Association and a coalition of five big insurers. However, the White House has denounced the bill, citing concerns that it does not help hard-working middle-class people, older Americans, or small businesses.

Key Takeaways:

• The bipartisan bill would provide $117 billion in federal subsidies to help people buy private insurance in the first five years, increasing to $223 billion in the second five years.
• The money for subsidies would come mainly from savings in Medicaid and Medicare.
• Low-income people who currently receive doctors' services and hospital care through Medicaid would be able to buy private health insurance with federal subsidies.
• The bill would cover at least 90 percent of Americans by 2004, up from the current 85 percent with health insurance.
• Subsidies would be available to people with incomes up to twice the federal poverty level and to children and pregnant women in families with incomes up to 2.4 times the poverty level.
• The bill would prohibit insurers from discriminating against people with medical problems and would impose a penalty on those who put off buying coverage until they were sick.
• Employers would have to offer at least two health insurance plans to employees but would not have to pay any of the cost.
• A provision for insurance cooperatives would allow state government agencies and private groups to establish insurance pools to pool the purchasing power of consumers and small businesses.
• The bill would give doctors some relief from malpractice lawsuits by setting a limit of $250,000 on damages that could be awarded for pain and suffering.
• Some members of the American Medical Association have criticized the bill, saying that it does not aim high enough in providing universal coverage.

Statistics:

• 85% of Americans currently have health insurance.
• The bipartisan bill aims to cover at least 90% of Americans by 2004.
• The bill would provide $117 billion in federal subsidies to help people buy private insurance in the first five years.
• The subsidies would increase to $223 billion in the second five years.
• A family of four was classified as poor with an income of less than $14,764 last year.

Sources:

• The New York Times
• AP News
• Congressional Quarterly
• American Medical Association
• Aetna Life and Casualty
• Cigna
• Metropolitan Life Insurance Company
• Prudential Insurance Company of America
• Travelers Corporation